Sidharth Kakkar knows all about the pain of relying on a giant spreadsheet. While building his previous company, Freckle Education, it got to the point where the main spreadsheet full of data everyone was using would no longer load or the computer would crash.
His company was eventually bought, but that pain point stuck with him, so when Kakkar left, he started doing discovery interviews about how other companies were dealing with what he called “spreadsheet nightmares.”
“One of my favorites was a CFO who floated a company, and on the roadshow people would ask for all these cohorts, and his team would go crazy putting them together just for the roadshow and literally never do anything with them again Kakkar recalls.
That’s when, in December 2020, he and Michelle Lee, his first bizops tenant, decided to launch Subscript with subscription intelligence. Targeting subscription-based SaaS businesses, Subscript develops APIs that collect data from CRMs, ledgers, and billing products and organizes it so that the data is not only easy to find, but also provides up-to-date statistics on subscription revenue.
Kakkar says subscriptions have been going through a “ridiculous crack” lately, but while they like the idea of returning or returning customers, not everyone wants to use the language of subscriptions to make business decisions.
The company, still in beta, brought in $3.75 million in seed funding, led by First Round, with the participation of 40 angel investors, including Plaid CTO Jean-Denis Greze, Pilot founder Waseem Daher, CircleCI + Dark founder Paul Biggar, Postman’s Head of Growth Jesse Miller and Gusto’s Head of Growth Allen Wo.
Subscript creates custom data pipelines and the pipelines create what he called a “revenue source of truth” in Subscript. For example, if someone closes a deal in Salesforce for $1 million in bookings, the system differentiates between one-time revenue and recurring revenue. The financial person has the final say on what they see.
From there, the user can break down the data into what they need for investors, board of directors, and leadership teams to make data-driven decisions.
“You can have the big decision points that leadership teams look at and use it for course correction as well,” Kakkar said. “Sometimes halfway through a quarter you don’t know if you’re going to get your number, where you’re going and how it’s going.”
Subscript currently works with 21 clients, including Circle and Flipcause, and tracks over $100 million in client revenue. Kakkar said this is a number the company looks at internally as an indication of the size of the company.
The company opens its beta and will use the new funding to build the team and product. Because we’re still early in the journey and building a complex product, Kakkar said adding more people will be key in engineering and market support fictions.
As more companies structure their business models to accommodate the types of repeat customers that subscription-based businesses have, Subscript sees the breadth of its capabilities to accommodate those kinds of ideas, such as usage-based billing.
“That model is becoming very common,” Kakkar added. “There’s a depth of complexity in those kinds of businesses that we dive into at the beginning, but it’s impossible to do without software.”